Markets Rattled by Fears of End to Stimulus

6/11/2013 10:51AM

Global financial markets were roiled by concern about the limits of central-bank easy-money policies. Stocks, bonds and currencies from the Philippines to Spain to the U.S. came under pressure. Matthew Walter joins MoneyBeat. Photo: Getty Images.

This transcript has been automatically generated and may not be 100% accurate.

... margins are selling off from Tokyo to Berlin to New York and as usual ... fears about what central banks all are or are doing or might or might not do ... is behind it Matthew Walter stops find MoneyBeat this morning ... morning everybody ... explain it all for us I've that um ... he really is easy is Bank of Japan ... is he ... seems leaders to customers have added a trigger but ... the realism of underlying factors the area are behind all these moves so ... the big advantages commonly this big central bank to come out ... and disappoint markets but not providing some more support for basically overnight our time to get it ... right on the skin of their expected I guess today announced new stimulus measures somebody call me to do with market which has been very vault full full tile in the past three or four weeks ... um so people expect them to come out and really this kind of stood pat they ... denounce a very aggressive monetary easing program in April ... and since then that the sort of holding firm and said ... nah it's amazing is you know in April it was ... the greatest thing in the world try not ... to ... do everything ... Markets fly out ... around to maintain the program does not adding to it ... and markets are selling of me I think it to for monthly has started me and ... then he showed they knew I mean really when ... I mean it was like wild fire ... sale prices it's across asset classes well right we got stock markets coming down on bonds and ... Treasuries the US are down to the U S ten year ... is enough for two month highs today ... aam and that is heading of ... that is going down that the impact on a lot of things one of them is emerging market currencies the mean time you saw emerging market the Indian ... rupee overnight before this wouldn't happen party can allow for a ... South African rand mean emerging market correction of really taken a hit ... so we have is ... you know that the BOJ is the latest last week the ECB also essentially ... signal that they're not gonna do they don't have any new his impulses coming ... there's a debate in the US so when the Fed is concerned tapering their policies ... so all these these the end of this aggressive central bank easing for years has been pushing investors ... into their yielding assets that means emerging markets ... presence with its trillion dollar which offer higher yields and all of those those bets are basically coming under fire right now because people are in a really rushing for the exits ... so you know then you have reactions like in Turkey and and and the overnight in Sentra banks intervene essentially to sterilize their currencies ... Brazil's just this morning has also taken action again to try and stabilize the Ryall ... ALM so this is that I mean ... how much of this is ... a knee jerk reactions to freak out right now how much is a fundamental move only seen as the market to bid up and down the updated down ... I how much it is just to short-term churn ... it's really going to come down to when ... markets feel more secure war ... about what the Fed's next move is can it mean ... ALM so you know the the the US artist U S taxes on very well this year ... now those are also kind of in question right ... um so it's you know ... who was christened clarity on and you know when the tapering the Fed's bond buying firms can start ... and when that case is gonna look like ... things might start to settle down until ... as long as people are uncertain about ... you know ... how much did this and then going forward what it's going to be to have this yet and I Danone defenses of their tapering off think of the diesel settled the houseguests ... are now all that is in a row from last everybody thanks lot but he added